As 2020-2021 was hit by COVID-19, shopping behaviors weren’t left unchanged. All markets and sectors that were behind in the development of online shopping platforms were forced to accelerate their digital transformation. Consumers of 2021 are demanding that retail companies bring new customer experiences to maintain an accelerated pace of digital evolution.

Having an eCommerce business is no longer a luxury, it is an essential requirement that a retailer must have to bring in sales in the post-pandemic years. In this pandemic year alone, global eCommerce retail sales grew by more than 25%, emphasizing the importance of having a retail eCommerce business. In this blog, we are going to analyze some of the top eCommerce trends that will define the retail industry in 2022.

Consumer behaviors have changed drastically. Lower in-store traffic coupled with an increasing preference for powerful digital experience, customers are pivoting their demands of brands.

According to a study carried out by Statista on eCommerce platforms, this is the future of retail:

Due to the notorious changes in the consumer shopping behaviors, top ecommerce trends have emerged and will be the ones to set the new digital standards in the upcoming year.

1. Retail Is Now Omnichannel.

We all know that the COVID-19 pandemic accelerated what would have been several years of e-commerce growth into a few months, and now the line between offline and online shopping has been blurred. A consumer may start choosing their products in digital commerce and checkout in the physical store. A Harvard Business Review report disclosed that 73% of shoppers used multiple channels and eCommerce sites for research, allowing customers to discover and buy new products.

Experts assure that in the coming years the physical retail store will continue to have its importance in the purchasing process for many consumers, but it must be complemented with many technological advances like augmented and virtual reality, drone delivery, new payment methods, among others that complete and improve the customer experience. A consumer survey showed that 61% of consumers rely on physical stores being open for them to purchase the goods they and their families need.

Omnichannel customers spent an average of 4% more in the physical store and 10% more online than single-channel customers. This suggests that deliberate searching beforehand led customers to greater in-store purchases. For example, customers who used 4+ channels spent 9% more in the store, compared to those who used just one channel.

Omnichannel is a plus for customer loyalty as well. Online shoppers attend 23% more to physical stores and are also more likely to recommend the brand to family and friends.

2. Augmented reality to improve the shopping experience.

Using augmented reality in your eCommerce store can give your business the edge over your competition. Gartner points out that in 2020, 100 million consumers used AR technology to buy online and suggests that 35% of buyers would buy more online if eCommerce had that virtual solution to test a product. Also, 71% of consumers would buy more in that store if they were allowed to experience the products through this technology.

With this technology, shoppers can better visualize the product they want to buy, providing them with more of an in-store experience. The retail industry is an example of the sectors that benefit from this technology. Zara has started to implement it through reality mannequins and a new eCommerce platform that shows life-size models wearing the brand’s latest clothes. This enables retailers to generate online sales since it is possible to buy the clothes through the app.

3. User experience will be extended to voice assistants.

Voice assistants in smart devices continue to improve their technology and are becoming more and more accessible to consumers. In the US, adult ownership of smart speakers has reached 55.6% in 2020 target=”_blank”.

The main focus of a smart speaker is for customers to search for stores and products, as well as writing notes, getting news, and more. According to Google, 42% of Europeans use voice search on a daily basis and voice shopping will reach $40 billion in the US by 2022. And there is a reason for that, a person can only type 40 per minute, while they can speak an average of 150 words in that same amount of time.

Devices specialized in voice assistance, such as Alexa, the Amazon Dot, or Google Home, are all gaining ground. And while Amazon continues to control the market with Alexa, with 75% of the market share, personal voice assistants will be a fundamental pillar in the future of digital trends.

Let’s not forget that having a voice assistant requires online store retailers to pay more attention to three fields: Content, SEO strategy, and UX, since voice assistants still crawl Google to make customer suggestions.

4. From eCommerce business to marketplace.

Ecommerce companies who are looking to take the next step in the game should look in the direction of a marketplace. A marketplace is a website or app where you can find different brands and people working as sellers, sharing the same online commerce platform. The best way to understand it is with well-known examples: Amazon, Mercadolibre, Linio, among others. These types of platforms help diversify the offer of your retail eCommerce business and improve profitability: today 41% of online sales happen in a marketplace.

The marketplace revolutionizing the internet is Amazon. Amazon has not only changed the way we shop but also the way we live. What began as a home delivery book distributor in 1994 called cadabra.com, has now become the second company in history to exceed a stock market value of more than a billion dollars.

Amazon.com consumers are extremely loyal, which has allowed the platform to have a monthly traffic average of almost 3.68 billion visitors in 2020. Also, a 2020 survey reported that 89% of consumers were more likely to buy products from Amazon than another eCommerce company. According to Convey study, these are the three main benefits that consumers find in Amazon:

5. Social commerce — Shopping on social media

Purchases via social media are gaining popularity as well. Facebook and Instagram are the most common social media platforms consumers use for purchasing online. According to an eMarketer study, the number of social buyers in the US is expected to rise from 60.6 million in 2019 to 108 million in 2025— that’s more than a 75% increase in mobile shopping over just a few years.

Social commerce is mostly driven by influencer marketing. From micro to macro, brands hire influencers to create friendly content that does not look like an ad – this is called user-generated content (UGC). UGC has been proven to be more effective in brand advertising, as 71% of US consumers said that the product recommendations from friends on social media were influential in their online purchasing decisions.

Retailers can reach these online shoppers by setting up a Facebook Shop and using it to create a shoppable Instagram page. These platforms also provide many tools for listing products and creating ads to help drive more sales. According to the 2021 Shopper Experience Index from Bazaarvoice, almost 1/3 of consumers in the US rely on social media to learn about new products, and 39% of 18- to 34-year-olds have already purchased at least once through social media.

These digital trends will continue to evolve, and it is most likely that such evolution will continue in the direction that omnichannel is pointing.

The fashion industry and the textile sector have made great progress in recent years, betting on sustainable fashion and a more circular economy. Much is said about that, but do you actually know what ethical fashion is?

Sustainable fashion and ethical clothing consists of making clothes and accessories from materials that come from nature and even waste materials – as long as they can be recycled – such as plastic bottles or paper. These sustainable materials are used to manufacture new fabrics that allow making garments.

In addition, sustainable fashion is beneficial for our health. Ecological garments, or “eco-garments”, are made with natural materials such as organic cotton, bamboo, algae, tencel (cellulosic fiber), nettles, fish skin (used for shoes and bags) and natural dyes that give color to the sustainable fabrics. All these materials are free of toxic and dangerous chemicals, which prevents allergies and skin irritations, in addition to the low environmental impact.

The fashion industry has an important role to play in approaching global sustainability challenges, both because of its impact and its influence, but it is notoriously under-regulated on ethical practices and is the second most polluting industry.

Luckily that is starting to change. In Europe and the US, governments are considering new policies and regulations that could add sustainable practices, improve the wages and working conditions of garment workers and transform the fast fashion industry. Pressure to change is coming from investors, consumers and even brands themselves. Companies are responding with social and environmental commitments to do better.

But are they actually making a difference?

One way for fashion to reduce its environmental impact is by scaling circular business models, through which companies employ a range of strategies to reduce deadstock fabrics and recycled materials to make more efficient use of resources. Measures such as the EU’s carbon border tax will promote circular fashion by making the economics of onshore recycling and other sustainable practices more attractive.

How to Impulse the Future of Circularity?

A more circular fashion industry requires collective efforts in which fashion companies, customers and all participants in the value chain collaborate. The priority must be to set circular strategies, low environmental impacts and tackle scalability challenges.

One company that has embraced ethical fashion design is Dai Wear, a London-based company which employs recycled materials and sustainable fabrics to produce performance wear. The company uses biodegradable yarns for seams and air-dried fabrics to reduce washing needs.

Another American brand that is committed to sustainability is Christy Dawn, a fashion brand that creates vintage pieces with a big 70s influence. All clothes are manufactured in a very limited quantity, the brand uploads about 2-3 new pieces a week and are ethically made by artisans in Los Angeles. The creator Christy Dawn is highly committed to low environmental impact, so in addition to using deadstock fabrics, she makes sure to have fair trade conditions through long-term commitments with the manufacturers, suppliers and artisans who create the clothes.

How can you engage consumers to overcome stigmas and embrace sustainable practices?

As consumers become more engaged with sustainable fashion and ethical practices, circularity will be the key that unlocks the door to more sustainable fashion brands. While circularity is winning fans among some consumer groups, recycled materials still have some negative connotations. Nevertheless, consumers are willing to return recent purchases with the incentive of a refund.

Although social and environmental commitment of sustainable fashion is quite clear, by taking advantage of deadstock fabrics, plastic bottles,organic cottons and other natural resources, as well as fair trade conditions, these are the positive impacts of sustainable fashion brands:

Resources:

Ellen MacArthur Foundation

Clean Clothes Campaign

Ethical Time

Business Of Fashion

The Fourth Industrial Revolution, also known as Industry 4.0, is changing the way companies operate, their internal processes and, therefore, the technological environments in which they must be involved. But before we start analyzing the impact that this tech and digital revolution will have on organizations, people and assets, let’s do a beginners guide to talk about what Industry 4.0 is, what we mean by impacting businesses positively and the benefits of adopting it.

What is Industry 4.0?

Industry 4.0 is an evolution of industry that focuses heavily on interconnectivity, automation, machine learning, and real-time data. It integrates production and physical operations with smart digital technology and big data analytics to create a more holistic and better connected ecosystem. While every organization operating has different business models, physical systems and production processes, they all face the same challenge: the need for connectivity and access to real-time information.

Industry 4.0 is not just about investing in new technology and tools to make process improvements, change the manufacturing execution or boost productivity and efficiency, it’s about revolutionizing the way your entire business operates and grows in all the value chain.

These are exciting new technologies, but leaders of organizations must identify the ones that best meet their needs and support their manufacturing processes to increase efficiency in their companies.

Now that we have a scope of what the Fourth Industrial Revolution is, let’s analyze the impact of implementing this tech revolution in companies and their business process to stay updated. The impact that it has is much broader, affecting all industries, from the United Kingdom to the Middle East and its societies. Technologies related can also lead to entirely new products and services. The use of sensors and wearable devices, AI and machine learning to analyze large amounts of data, autonomous mobile robots, among others, will allow improvements in products from the creation of prototypes to the incorporation of connectivity, to other devices. These changes are reflected in the supply chain and, consequently, in customers.

What are the impacts of Industry 4.0?

The impacts of the Fourth Industrial Revolution can be felt at multiple levels: in ecosystems, at the organizational as well as individual (client) level:

– Ecosystems. In addition to the change in which horizontal and vertical systems operate, Industry 4.0 affects all the people who are part of the supply chain: suppliers, customers, board of directors, partner programs, among others. 

– Organizations. The ability to adjust and learn from data in real time can make organizations more responsive, efficient and productive. It also enables the organization to reduce its productivity risks, have preventive maintenance and smart manufacture in products.

– Individuals: Industry 4.0 can mean different things to everyone. For example, for employees it may mean changes in their inventory management, optimized processes and smart machines that are actual autonomous robots. While for customers it could mean digitally transformed processes and greater customization in products and services that better meet their needs.

What are the challenges of Industry 4.0?

Finding the right Industry 4.0 fit. The true challenge is that it isn’t always clear for companies which innovation initiative to adopt. Fourth Industrial Revolution offers a variety of options which carry high complexity risks due to the little experience we have in the implementation processes. That is why it is decisive for companies to make an exhaustive analysis and have a ROI calculator to make this great investment a success.

And for those companies that have already selected Industry 4.0, there are still barriers to  overcome. A real world example would be: How will companies build paths to select, justify and leverage the functionalities available to them? 

From a technology perspective, increased connectivity and cloud computing mean that issues like cyber physical systems and data ownership must be addressed. Companies must choose projects that are consistent with their business process, identify what the benefits of these technologies are and create the infrastructure to be able to incorporate them successfully.

It’s been awhile since ecommerce platforms started to grow and have become increasingly popular in the retail industry, opening the doors to global online shopping and retail ecommerce sales. Many companies have left behind the traditional physical store to expand on the ecommerce market. Today, partly due to the COVID19 pandemic, online retail sales have become the preferred purchasing method for consumers. As brick and mortar stores temporarily closed their doors, buyers relied on ecommerce retailers to purchase everything, not only through websites, but also through social media, online marketplaces and apps. Retail ecommerce is an informative source with a lot of impact, and allows companies to get closer to their target audience.

This business model has been key for small companies in the supply chain to grow and access other markets, from Asia Pacific to  North America, Latin America or the United Kingdom, something very difficult to achieve with traditional retailers and physical stores. Not needing large infrastructures and being able to do this without limitations such as time, space or logistics, cross border ecommerce has been one of the main causes that have led to its expansion. But how can we take advantage of this technology and implement it in our ecommerce business and shopping experience?

Well, let’s get back to basics and remember that in the retail industry it’s all about the consumer. Delivering a unique and personalized customer experience (CX) is of vital importance for both B2B ecommerce and B2C ecommerce organizations. Those that adopt an ecommerce model with the best-in-class CX will boost loyalty and ensure long-term revenue growth.

Currently, the ecommerce market is booming, and the Covid19 pandemic has given it the final push. Here is some data that confirms the ecommerce growth over the past year:

• U.S. consumers spent $78 billion online in March, up 49% year-over- year, according to the latest Adobe Digital Economy Index.
• Nine out of the world’s 10 largest ecommerce companies experienced double-digit revenue growth during the pandemic year of 2020, according to a recent GlobalData analysis emailed to Retail Dive.
•  83.7% of consumers said that the pandemic has prompted them to use more Internet to buy compared to traditional commerce, according to the 2021 Annual Ecommerce Study of IEB School.

In a recent Harvard Business Review Analytic Services survey, of nearly 1,100 executives, 42% expect the ecommerce leaders in their organizations to play a role when it comes to customer insight and sentiment analysis in the upcoming years.

Online sales are now part of the digital transformation of our everyday life, but still not optimized in many organizations. For an ecommerce system to be maintained over time, it is necessary to study the market situation, the viability of the project and have a team of people trained to carry out the processes. 

These are some focal points to keep in mind in order to carry out a successful ecommerce business:

• Create a business plan and investment feasibility for the ecommerce platform.
• Loyalty and digital marketing strategies.
• Choosing the right platform for creating an online store.
• Logistics and payment methods.
• Internationalization of the company to create a global ecommerce platform.
• Keep track of metrics to monitor social media.
• Study ecommerce trends such as Bockchain, Big Data and Machine Learning.

According to Harvard Business Review Analytic Services, leading retailers can study customers behavior online, via an app or other digital marketing channels, and determine with these technology advances if the CX is working or how it could be improved. Many companies have successfully broken down data using customer relationship management (CRM) systems for online shopping, internal communication tools, application programming interfaces, or cloud computing. For global retail ecommerce to be successful, retailers need the ability to see buyers’ interactions all in one place, whether they are in brick and mortar stores or online shopping.

The 2020 COVID pandemic created a new era of eCommerce and usage of marketing platforms. Customers are increasingly connected, mobile and socially influenced, therefore retailers of all sizes have the ability to create an effective online presence with digital advertising and leverage a multitude of advanced tools to drive more engaging experiences for their customers. Nine out of ten shoppers are now prioritizing experience using retail platforms that enable a seamless experience in store.

The growth of digital and social media platforms carry different responsibilities when exposing personal data. On one hand, users seek data protection since they do not want to be overloaded with digital advertising or have important data like passwords and bank numbers stolen. On the other hand, advertising industries seek to use this data to create personalized customer experience in their websites and targeted ads. However, earlier this year Google announced that by the end of 2023 it will end third-party cookies in Chrome, its proprietary browser and the most used in the world. This was a great shock for companies that use Google Chrome, Adwords and Analytics as part of their marketing and communication strategies, as they will have to rethink their advertising plans to track and target users in the near future.

Third-party cookies are those sent to the computer, cellphone or other device connected to the internet by a third domain, that is, outside the page being visited, and are commonly used to track user habits and offer personalized advertising. They can be differentiated from firstparty cookies sent to the system by the browsing history to facilitate future visits by remembering user names, passwords or browsing preferences. Due to the valuable information they provide about digital users and their preferences, cookies constitute a basic pillar for advertisers and publishers, and are used to sell advertisers digital broadcasting spaces adjusted to the target audience.

That is why when Google made the declaration that they would stop using third party cookies, the obvious question was: does this mean that companies will no longer be able to track user data? And what does this represent for ad businesses that depend on ‘cookies’ to create product positioning, targeted advertising and google ads?

It is important to note that Google makes most of its revenue through paid advertising delivering results for advertisers, and its services rely on third party cookies in one way or another. Until June 2019, 94% of internet searches occurred in a company belonging to Google. (Jumpshot via Sparktoro, 2019). So Google ending Chrome’s support of thirdparty cookies is not the end of tracking in Google Chrome. The need for true end-user consent to process personal data will persist long after third party cookies and the technologies replacing them.

It was not an overnight decision, other web browsers were on the same boat. Apple began to implement it with Safari and Mozilla with Firefox, promoting its own mechanisms to block thirdparty cookies, a basic element of the functioning of the webs and, above all, fundamental for online advertisers. Google’s decision continued this trend to have more privacy for Chrome users, however it also opens the door to consolidate its monopoly. How? Promoting a successor of cookies that is of interest to Ad Managers and the adtech industry in general.

To mitigate the great impact that the suppression of thirdparty cookies in Chrome may have on the digital advertising market, the Mountain View (California, USA) firm relies on its “Privacy Sandbox”  initiative, which is still in development. Announced in 2019, Privacy Sandbox aims to create open standards that improve privacy on the web, allow users not to share their data or online activities as much as possible and, at the same time, be useful for advertisers and publishers to create targeted ads for specific audiences.

The launch of open standards is still a few years off, so what can companies do in the meantime to take care of their users’ data? One option is to use a consent management platform ensuring that your website detects and controls all cookies and trackers, delivers transparency and a choice of true consent to its users before collecting their personal data.

Due to so many technological and digital changes, retailers are wondering how to create an in-store and out-of-store brand experience that is relevant to consumers, improve the customer relationship between their company and audience, and differentiate their service from the competition. Positive customer experiences in physical stores, as well as digital experiences, are the center of brand loyalty, high levels of customer satisfaction, as well as successful retail operations, providing a reason for customers to keep coming back to the store, shop on the mobile app and follow you on social media.

But, while the demand for improving the customer experience is increasing, many retailers are struggling to develop assertive cx strategies that offer a competitive advantage and a real emotional connection with their brand. So the question we are all asking is, how can companies create successful customer experience strategies and manage a customer journey with a strategic approach to better understanding customer expectations in the retail industry? 

First of all, as the impact of technology grows in the industry, action plans must be made. Retailers must invest in analyzing customers and optimizing their technology to improve the experience. Journey mapping helps visualize how customers interact with a product or service, and how they feel along the way.

The Engaged Shopper

Nowadays, shoppers expect to have a digital customer experience in which they can buy in real time, have live chats and go through all the customer journey experience without having any problem or bad experience. If shoppers can readily purchase a product on instagram, via an influencer on Tik Tok or during a livestream, it will be increasingly difficult to force them to model the traditional customer experience either in store or online. As a result retailers have to design their shopping and user experience around these changing online customer needs and behaviors.

Successful retailers are investing in buying online pickup in store, buying online ship to home, buying online return in store and other fulfillment methods to drive efficiency in the shopping process. To keep customers engaged, companies have to craft a purchasing experience that is seamless, quick and comfortable for every shopper regardless of levels of engagement. Also, measuring customer emotional connection is a must in the experience management, it allows retailers to have customer feedback on their shopping process.

The Holistic Customer

Customers are increasingly shopping across multiple channels and with varying levels of engagement, creating a non-traditional customer journey that makes the brand experience different for every buyer. Consumers have sporadic presences, the way every shopper interacts is different, that is why understanding digital customers is critical to empowering an effectively personalized shopping experience and increase the customer satisfaction.

If your customer likes to shop online for certain products, but likes to come in store for more engaged shopping processes, only some cx strategies will work for them. Sending them an in-store only coupon for a t-shirt might not be the way to get them in store. But, for a pair of premium shoes they might make the trip. Managing customer experience and building a holistic vision of every customer that is accessible across channels is absolutely essential for positive experiences and customer loyalty.

A Connected Approach

The true key to making customer experience strategies even more effective, is through enabling a connected approach. This takes the form of 3 critical systems that work together to empower seamless commerce:

Mobile Point Of Sale

The Teamwork mobile point of sale enables a flexible purchasing journey, customers can avoid long waits & brands can ensure that purchases can be easily managed and fulfilled, creating superior customer experiences and positive customer feedback.

Order Management System

Flexible fulfillment is critical, especially with customers purchasing products from anywhere. Orders need to be fulfilled quickly, conveniently and reliably. Mistakes and bad experiences cost customers & Teamwork understands this. The industry leading OMS enables retailers to operate with confidence, managing teams and truly take advantage of unified commerce and a positive customer relationship.

Inventory Management

Customers don’t want to wait, with ecommerce companies taking significant leaps forward in reducing shipping times, shipping costs and online availability, retailers with limited stock struggle to compete at the same level. Teamwork provides mobile app tools, so that customers experience management team is always aware of where products and the quantity of available items.

Summary

To deliver the experiences shoppers want, brands must integrate customer databases and analytics tools to create exceptional customer engagement, build brand loyalty, and increase ROI.

Are you looking to incorporate omnichannel strategies into your brand? Teamwork Commerce is specifically designed to enable seamless retail across channels, allowing you to build customer experiences that are tailored for every single shopper and provides award winning customer service.

See how we can help you create an omnichannel approach to eCommerce and implement POS Systems in your company:  twfrance.wpengine.com/mobile-point-of-sale